The scale of tax of solidarity on wealth (ISF), which had not been updated since 1997, will now evolve as that of the tax (IR). In 2005, it will be adjusted inflation excluding tobacco (1.7), which will be the threshold of the heritage of 720.000 euro to 732.240 euros of heritage. It is the only development that members should provide to Lai last night, in the National Assembly, in the review of the "recipes" of the finance bill for 2005. It isn't yet, the only change that hoped deputies UMP. A final meeting, at 20: 30 Jean-Pierre Raffarin and Nicolas Sarkozy, UMP, including Bernard Accoyer and Pierre Méhaignerie MEPs, representatives thought convince the Prime Minister to accept to suspend for one year, in 2005, the "Juppe ceilings", and to assess the effects. Introduced in 1996 at the initiative of Alain Juppe, the ceilings of the ISF limited to 10.970 euros the tax benefit of limits of taxation (EWB IR) at 85 of annual income. Juppe ceilings less than 2,000 touches very large fortunes, but he is accused of being a strong incentive to tax expatriation and the relocation of activities. The Government has only accepted a development in the study by the committees of Finance of the two assemblies of the effects of the removal of the Juppe ceilings. Parliamentarians are also invited by the Government to approve, at a later date, the principle of a relief of the ISF for investments in innovative companies. This measure will be introduced in the Senate.
The fate of the wealth solidarity tax resulted in time-consuming negotiations between, on the one hand, the UMP deputies and, on the other, the Minister of finance, the Prime Minister and the head of State.
Chaired by Pierre Méhaignerie, the Board of Finance of the National Assembly had been determined, this year, for the flexibility to this tax held not only anti-économique but also unfair because it strikes more in addition to "small fortunes". In addition to indexing of the scale and the removal of the Juppe ceilings, the Finance Committee wanted wear 20 to 30 discount on the value of the principal residence. On this last point, she knew quickly that it would not be successful.
Overall, however, the UMP deputies arrived at least move the Elysee on the question of the scale. But it is their only reason for satisfaction. In the majority, the negotiation has been bitter. For twenty-four hours, multiple meetings were held that an arrangement be found.
The issue was first briefly addressed in the course of a undisclosed meeting, Wednesday evening, between the head of State and the President of the finance commission, Pierre Méhaignerie. Later in the evening, the Prime Minister, Jean-Pierre Raffarin, received the leaders of the Finance Committee. Yesterday, at lunch time, Nicolas Sarkozy went to speak with them for twenty minutes in a bureau of the National Assembly. Back in the House shortly before 7 p.m. yesterday, Finance Minister was to make known the position of the Government around 23 hours.